The art of Trading with Indicators

There are many ways to trade effectively in the Stock Market.
The technical analysis is one of the ways which is used by a majority of the Traders.
In the technical analysis the price and the volume are studied and historic
price movements are used to anticipate the future price movements. There are
more than dozen of indicators available in the Stock market to trade and
anticipate the price movements.

Some of the common indicators used in the Technical analysis
are MACD, RSI, Bollinger Bands and moving averages. The moving averages are the
simplest of the indicators being used in the Technical analysis. MACD stands
for moving average convergence and divergence. In case of this indicator two
moving averages of different periods are drawn and convergence and divergence
of these two moving averages is watched. The crossovers of the moving averages are
seen as possible chances of trend reversals.

Besides the MACD, Bollinger band is an indicator which is
used extensively by the technical analysts. The Bollinger bands are formed with
the positive and negative standard deviation of the moving averages. The price
movement is confined between the upper band and the lower band. A breakout from
the bands can be taken as the potential chance of trend reversals. A breakout
from the upper band can be considered as the start of the downtrend. And a
breakout from the downtrend can be taken as a potential chance of starting of an
uptrend.

The new traders can also trade on the advice and support of
the advisory firms like Money Classic Research. The advisory firms provide the
accurate stock market tips in the form of buy and sell calls with proper stop
loss. Money classic research is a reputed advisory firm which is both SEBI
registered and ISO certified.